Clean Diesel second quarter revenues down but profits up

Revenues were down for Clean Diesel Technologies but the company still recorded increases in profits and earnings per share when the company released second quarter earnings Aug. 15.

Clean Diesel revenues fell during the quarter from $9.9 million in 2015 to $8.4 million in 2016. Despite this, income increased from a net loss of $2.4 million during the same quarter last year to profits of $1.3 million this year. Accordingly, earnings per share also increased from a loss of 81 cents per share in 2015 to earnings of 35 cents per share in 2016.

During the quarter, Clean Diesel converted $8.5 million of the company’s debt into common stock. The company also received a $1.25 million investment from Denmark industrial giant Haldor Topsoe A/S. Clean Diesel also said in a news release it formed a relationship with Haldor Topsoe that could help its technology reach a larger number of customers through Haldo Topsoe’s connection network.

The company listed $26.5 million in assets in its news release, but did not say how much cash it had on hand.

The company shook up its C-suite when Chief Financial Officer David Shea resigned on June 8 and it replaced him with Tracy Kern, who left Interlink Electronics to take the position.

As part of the separation, Shea was paid five months’ salary, or $72,916.67. Kern will earn a salary of $200,000 per year at Clean Diesel Technologies and $50,000 in company stock options, which vest on Nov. 30, 2016 and May 31, 2017.

On Feb. 12, the Nasdaq notified Clean Diesel of its intent to delist the company’s stock from the Nasdaq Capital Market within six months unless the company’s stock sat about $1 per share for 10 consecutive business days during that period.

On June 1, the company also said in filings with the Securities and Exchange Commission that it executed a one-for-five reverse stock split to prop its stock up and remain listed.

As of 10:59 a.m., Clean Diesel shares were up a penny to $3.89 per share.